AHMEDABAD: The year 2022 remained highly volatile for the equity markets across the world. Even though Nifty gave 4.3% return in the year, Gujarat-based companies excelled with returns up to 197% in 2022.
Some of the Gujarat companies, however, failed to perform like the other companies from the state — shedding even 80% of their value in the beginning of the year.
Experts believe that the next year may see some consolidation in the first half but Gujarat Inc will continue to perform well with less worry about inflation.
Adani Group companies have performed well on the markets and Adani Power, Adani Enterprises and Adani Total Gas have given returns of more than 100%.
Asif Hirani, the director of a stock broking firm, said, “If we look at all Gujarat-based companies, more companies have given positive returns than those who had given negative returns. Some of the companies have given returns of more than 100%.”
He said despite the Russia-Ukraine conflict which pushed inflation to 40 years high and unprecedented rate hike by the US Fed, most of the Gujarat-based companies emerged unhurt on the back of strong domestic demand and healthy financials.
“We expect 2023 to be good for most of the Gujarat-based companies as inflation is expected to be under control and borrowing cost is also likely to trickle down,” said Hirani.
Samir Gandhi, the director of another stock broking firm, said, “Gujarat-based companies have been consistent in their performance due to the revival in manufacturing where the state is the leader.”
However, some of the companies like Sintex Industries (-80%), Sadbhav Engineering (-59%), Alembic Ltd (-30%) and Arvind Ltd (-25%) have given negative returns in the calendar year 2022.
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